MARTINEZ EXPECTS QUICK TAX PACKAGE OK

TALLAHASSEE -- Gov. Bob Martinez on Tuesday asked the Legislature to kick its habit of delaying big tax decisions until the frantic final days of the two-month session.

Tax deals often aren't cut until late in the session during private meetings of powerful lawmakers. That time-honored practice gives lobbyists and dissident legislators -- and governors as well -- little time to try sabotaging leadership's final goals.

Yet the new Republican governor, in an address to the citizens watchdog group Florida TaxWatch, exhibited confidence that he can get quick approval of his ambitious tax package.

"In my view, to set the wheels in motion, it would be extremely helpful if in the first month of the session we could conclude with the revenue side . . . so that we will know what dollars there really are to spend," Martinez said.

Martinez is proposing at least $806 million in new state taxes, including $553 million to be generated by repeal of sales tax exemptions on a host of services. Those figures are based on the Legislature's going along with his proposal to roll back the state sales tax from 5 cents to 4.5 cents as of Jan. 1, 1988 -- though legislative leaders in both houses say they don't support a rollback.

As an alternative to Martinez's half-penny sales tax rollback, Senate Finance, Taxation and Claims Chairman Tim Deratany, R-Indialantic, told Florida TaxWatch on Tuesday that he supports bonding that half-cent and putting it into a trust fund specifically for infrastructure needs.

"I truly believe we have a shortfall on infrastructure," Deratany explained. He said if not for that, he couldn't support higher taxes.

Meanwhile, Martinez told TaxWatch he embraces its suggestions for ways to run government more efficiently. He said his administration already has implemented about $100 million worth of TaxWatch savings ideas and plans to put other TaxWatch ideas to work.

But he said rapid-fire growth is making massive demands on the state that must be met with major tax increases this year.

"We all need to have a little bit of pain," Martinez said.

He acknowledged that he has secured no commitments from legislative leaders to follow his bidding for a quick timetable on passing new taxes.

"I think probably it's a goal of everyone. Whether it's an achievable goal, only time will tell," Martinez said after his speech. "What I've stated is we ought to have the goal."

He said another good reason for early resolution of the sales tax exemption issue is to give the state Department of Revenue ample time to prepare for implementing the new taxes as of July 1.

The initial reaction from some legislative leaders was positive.

"As far as I'm concerned, we may be ready at that point," said House Speaker Jon Mills, D-Gainesville. "The governor's overall position is helping a lot. We've been planning on getting (the House tax package) out early."

Deratany said, "I don't think the tax package will be as difficult as the appropriations bill. The tax package could conceivably go through in the first month."